📊 ASTE Key Takeaways
Is Astec Industries Inc. (ASTE) a Good Investment?
ASTE exhibits critical profitability deterioration with net income flat despite 8.1% revenue growth, resulting in an unsustainable 0.3% net margin. The sharp disconnect between top-line growth and bottom-line stagnation reveals severe margin compression and operational inefficiency. Combined with abysmal returns on capital (ROE 0.2%, ROA 0.1%), the company is destroying shareholder value despite stable cash flow and balance sheet.
Astec Industries shows improving top-line momentum with 8.1% revenue growth and solid liquidity, but that growth is not yet translating into strong earnings power or cash generation. Profitability remains modest, with a 4.7% operating margin, 2.8% net margin, and only 1.5% free cash flow margin, suggesting the business is financially stable but still in a low-return phase.
Astec Industries Inc. Key Strengths (ASTE)
- Revenue growth of 8.1% YoY demonstrates top-line momentum in construction machinery sector
- Strong liquidity with 2.34x current ratio and positive free cash flow of $32.6M provides financial stability
- Moderate leverage at 0.54x debt-to-equity with adequate 3.3x interest coverage prevents immediate solvency risk
- Revenue growth is healthy at 8.1% YoY, indicating demand resilience and operational recovery.
- Balance sheet risk appears manageable with a 2.49x current ratio, 1.07x quick ratio, and debt/equity of 0.47x.
- Interest coverage of 24.4x suggests debt servicing capacity is strong despite meaningful long-term debt.
ASTE Stock Risks: Astec Industries Inc. Investment Risks
- Net margin collapsed to 0.3% with zero earnings growth despite revenue expansion, indicating severe operational deterioration and pricing/cost control failures
- Returns on capital are effectively zero (ROE 0.2%, ROA 0.1%), meaning the business generates minimal shareholder value despite deploying $1.4B in assets
- Operating margin of 2.3% leaves no buffer for economic downturns or further cost pressures; interest coverage of 3.3x becomes vulnerable if margins compress further
- Net income was flat YoY, indicating limited operating leverage despite higher revenue.
- Free cash flow is thin at $20.7M and a 1.5% FCF margin, which weakens growth quality.
- Returns remain subdued with 5.7% ROE and 2.8% ROA, pointing to inefficient capital utilization relative to asset base.
Key Metrics to Watch
- Operating margin trajectory - critical to determine if cost inflation will persist or stabilize
- Gross margin by segment - necessary to isolate whether pricing power or input cost inflation is the culprit
- Return on equity improvement pathway - company must demonstrate recovery plan to generate acceptable capital returns
- Operating margin expansion
- Free cash flow conversion
Astec Industries Inc. (ASTE) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.34x current ratio provides a solid financial cushion.
ASTE Profit Margin, ROE & Profitability Analysis
ASTE vs Industrial Sector: How Astec Industries Inc. Compares
How Astec Industries Inc. compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Astec Industries Inc. Stock Overvalued? ASTE Valuation Analysis 2026
Based on fundamental analysis, Astec Industries Inc. shows some fundamental concerns relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Astec Industries Inc. Balance Sheet: ASTE Debt, Cash & Liquidity
ASTE Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Astec Industries Inc.'s revenue has grown significantly by 21% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.47 reflects profitable operations.
ASTE Revenue Growth, EPS Growth & YoY Performance
ASTE Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $329.4M | $1.3M | $0.06 |
| Q3 2025 | $291.4M | -$4.2M | $-0.18 |
| Q2 2025 | $330.3M | -$10.6M | $-0.47 |
| Q1 2025 | $309.2M | $3.4M | $0.15 |
| Q3 2024 | $291.4M | -$6.2M | $-0.27 |
| Q2 2024 | $345.5M | -$10.6M | $-0.47 |
| Q1 2024 | $309.2M | $3.4M | $0.15 |
| Q3 2023 | $303.1M | $700.0K | $0.03 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Astec Industries Inc. Dividends, Buybacks & Capital Allocation
ASTE SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Astec Industries Inc. (CIK: 0000792987)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ASTE
What is the AI rating for ASTE?
Astec Industries Inc. (ASTE) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ASTE's key strengths?
Claude: Revenue growth of 8.1% YoY demonstrates top-line momentum in construction machinery sector. Strong liquidity with 2.34x current ratio and positive free cash flow of $32.6M provides financial stability. ChatGPT: Revenue growth is healthy at 8.1% YoY, indicating demand resilience and operational recovery.. Balance sheet risk appears manageable with a 2.49x current ratio, 1.07x quick ratio, and debt/equity of 0.47x..
What are the risks of investing in ASTE?
Claude: Net margin collapsed to 0.3% with zero earnings growth despite revenue expansion, indicating severe operational deterioration and pricing/cost control failures. Returns on capital are effectively zero (ROE 0.2%, ROA 0.1%), meaning the business generates minimal shareholder value despite deploying $1.4B in assets. ChatGPT: Net income was flat YoY, indicating limited operating leverage despite higher revenue.. Free cash flow is thin at $20.7M and a 1.5% FCF margin, which weakens growth quality..
What is ASTE's revenue and growth?
Astec Industries Inc. reported revenue of $396.3M.
Does ASTE pay dividends?
Astec Industries Inc. pays dividends, with $3.0M distributed to shareholders in the trailing twelve months.
Where can I find ASTE SEC filings?
Official SEC filings for Astec Industries Inc. (CIK: 0000792987) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ASTE's EPS?
Astec Industries Inc. has a diluted EPS of $0.06.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is ASTE's fundamental grade?
Based on our AI fundamental analysis in June 2026, Astec Industries Inc. has a C grade with 80% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is ASTE stock overvalued or undervalued?
Valuation metrics for ASTE: ROE of 0.2% (sector avg: 15%), net margin of 0.3% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is ASTE's AI grade for 2026?
Our dual AI analysis gives Astec Industries Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ASTE's free cash flow?
Astec Industries Inc.'s operating cash flow is $40.7M, with capital expenditures of $8.1M. FCF margin is 8.2%.
How does ASTE compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 0.3% (avg: 10%), ROE 0.2% (avg: 15%), current ratio 2.34 (avg: 1.8).